EURUSD continues to trade lower amid better than expected German ZEW economic sentiment. It came at -2.1 for Nov month compared to forecasts of -13.2. The jump was mainly due to Brexit optimism, auto tariffs from the US and the possibility of the trade deal. It hits low of 1.10190 and is currently trading around 1.10244.
US 10-year yield was soaring and jumped more than 15%. It hits a high of 1.97% and is currently trading at 1.94%. It is holding above major resistance 1.91% and an increase till 2.14% likely. The spread between US and German 10- year yield has widened from 208 bps to 218 bps.
On the flip side, near-term support is around 1.1000, any break below will drag the pair down till 1.09395/1.0900. Major weakness only below 1.0880.
The near-term resistance is around 1.1070, the indicative break above will take the pair to next level 1.1000/1.1140/1.1180.
It is good to sell on rallies around 1.1065-68 with SL around 1.1100 for the TP of 1.10935.
